BMS Holdings Berhad: Premium Margins and Multiyear Growth Story Ahead

rayden66
Publish date: Tue, 18 Nov 2025, 06:53 PM
Executive Summary:

BMS Holdings Berhad enters the ACE Market as one of Malaysia’s most established surface coverings retailers and distributors, backed by a 30-year operating history, twenty nationwide showrooms, and a logistics footprint exceeding 620,000 sq. ft. Its scale, brand equity and distribution reach distinguish it from traditional tile manufacturers, positioning it more as a consumer-focused retail platform rather than a cyclical building-materials counter. This distinction alone justifies a stronger valuation stance, especially given its ability to maintain high margins and consistent earnings growth.

Key Investment Highlights

– Financially, the Group has delivered a four-year revenue CAGR of 15.48% and PAT CAGR of 27.62%, expanding from RM207.89 million in FY2022 to RM320.18 million in FY2025. More importantly, profitability has improved steadily, with gross margins rising from 31.76% to 35.11% over the same period, driven by higher contributions from its own-brand tiles, engineered stone products and stronger pricing power in the retail and project segments. Retail gross margin now exceeds 42%, which is exceptional when compared against local manufacturers whose margins typically sit between 13% and 32%. BMS’ net margin of 6.7% also surpasses most peers in the industry comparison table, signalling a structurally higher-quality earnings profile.

Potential 30 sen +

This post has been edited by IPO ADDICT: Nov 19 2025, 07:15 AM